NEW DELHI, Jan 14 (Reuters) - India's $14.3 billion vehicle industry, buoyed by booming sales this year, kicks off its seventh biennial automobile fair on Thursday aiming to showcase new models and the country's growing manufacturing skills.
Auto Expo 2004 will have 960 exhibitors from 26 countries as well as delegations from 36 nations and expects to attract at least a million visitors, its organisers, the Confederation of Indian Industry, told a news conference on Wednesday.
"India's automobile industry contributes about two percent of the country's GDP compared to about 5.0-7.0 percent elsewhere, so that leaves much room for growth," Jagdish Khattar, CEO of India's largest carmaker, Maruti Udyog Ltd , said.
The Expo, which runs from January 15 to 20, will help India's automobile industry display its manufacturing skills, he added.
India, the world's 12th largest economy which has a population of over a billion people, is emerging as a leading maker of low-price, high quality vehicles and auto parts.
The country is already the world's second-biggest maker of motorcycles, the largest in tractors, a leading maker of mini cars and the fifth largest maker of trucks and buses.
Over 600 small and medium enterprises make auto parts and over 200 of them will display their wares and technology at the Expo hoping to win new orders from foreign firms.
D.K. Jain, president of the Automotive Component Manufacturers Association of India, told the news conference auto parts exports had jumped 20 percent this year and were poised to cross $1 billion in 2003/04 (April-March) and $2.5 billion in the next four to five years.
New models to be displayed by foreign car firms seeking to take advantage of the country's loosening import regulations are likely to grab much attention at the Expo.
The local units of Suzuki , Hyundai , DaimlerChrysler and Audi are likely to display new products as well as Bajaj Auto Ltd , the No.2 motorcycle maker.
The Expo couldn't have come at the better time for the booming industry.
Sales of Indian cars, utility vehicles and vans combined, jumped 30.9 percent in April-December, the first nine months of this fiscal year, from a year ago to 716,197 units and are expected to touch nearly one million in 2003/04.